Entrepreneurship And Innovation Assignment Business Essay

Entrepreneurship And Innovation Assignment Business EssayBeing in the competitive environment, innovation and entrepreneurial leader are essential for an scheme for its pick and supremacy. The definitions of entrepreneurship, innovation and the way in which they are applied in Small and Medium Enterprise (SME) is briefed in this assignment. The SME operates in textile application and the name of the organisation is Sri Vishnu Perumaal Spin story Ltd, a family business run by founder and his a son (Managing Director) in Coimbatore, South India.The growth of the Indian textile patience is limited because of the Chinese entrants. In spite of this limitation, Indian entrepreneurs who operate their business in this industry are continuously changing their merchandise attend to manage with the Chinese competitors. The growth and ripening of the Indian SMEs is also discussed. The process of generating ideas, selecting one among the visible(prenominal) ideas and implementing them are explained. Timmons model of individual entrepreneurship is used to explain the entrepreneurial demeanour of the founder and way in which he managed the innovation. The opportunity found leads to a incremental change in the production process of the steadfastly. As succession is astray seen in Indian family business, the process of succession and the characteristics required by the re youthfulal to make the succession successful are explained in detail. Some the characteristics, that a refilling should posses are intellectual noesis, personal motivation and commitment towards the fuddled are discussed.Apart from this factors which facilitates the entrepreneurship within the household are highlighted. These factors are companionship precaution, organisational culture, individual resources, coat of the firm, internal and external net cooking. Employing a non family member in the aged management and changing the expose raising culture are recommended by the author. Thi s could withdraw the attach to to higher levels and cultivation the responsibility of all the employees dallying the organisation. Production process is explained in Appendix A and Appendix B consists the organisational structure. This assignment go forth take you through the all the to a higher place mentioned.Contents1. Introduction 32. several(prenominal) Entrepreneurship in Sri Vishnu Perumaal Spin reading Ltd 61.1Managing Innovations 71.1.1Generating Ideas 71.1.2Selecting An Idea 81.1.3Implementing The refreshed Idea 83. Timmons Model Of soul Entrepreneurship 91.2Opportunity 91.3 Resources 101.4 Team 104. Sri Vishnu Perumaal Spin Yarn Ltd A Family Business 115. Factors Facilitating Entrepreneurship In The Organisation 121.5 association Management 121.6Individual Resources and Size Of The Firm 131.7Organisation culture 131.8Internal and External Networking 136. Recommendation 147. References 148. Appendix 15IntroductionEntrepreneurship is nothing but the way of think ing, reasoning and acting which is highly influenced by opportunities, leadership balanced for value creation and a holistic approach. Entrepreneurship is a human act which results in creation, enhancement, re newfangledal and realisation of values. In todays competitive world entrepreneurship has evolved beyond the classic start-up notion, which includes companies of all types from micro to embodied level in all stages. Thus entrepreneurship can be seen in slow and fast growing, old and new, small and large, in private, non profit organisation and in public sectors as well (Timmons A., 2009, p.101). The individuals who possess the skills of entrepreneurship are Entrepreneurs, they build/create values from nothing . It also requires vision, passion and commitment which motivates other team members to work towards the vision. And involves calculated risks taken by the entrepreneur to achieve their goal (Timmons A., 1990, p.37). Entrepreneurs are moulded with combined innovative and management skills. They also have control everywhere the entrepreneurial management process with in their organisation. Entrepreneurial management mainly emphasises on collecting ideas, aligning them, finding the correct opportunities, implementing them by marshalling their resources (employees and technology) and reviewing the outcomes of the same. As said by Schumpeter, innovation is introducing new products or improving the quality of the already existing products finding new markets, new orders of production or distribution or new sources for producing already existing products or introducing new forms of economic organisations (Schumpeter J. A., 1942) (This is available in lecture slides of Catherine Gurling).Author of this report worked for Sri Vishnu Perumaal Spin Yarn Ltd, a spinning lollygag in Coimbatore, South India. Approximately 190 individuals are employed in the telephoner at present, has an average turnover of Rs 30.1 gazillion per annum and operates in textile industry. indeed the companion is categorised as Small and Medium size of it Enterprise (SME) (Bridge S 2003, p.182). The product of the firm is Yarn, which is produced from natural/artificial (man-made) theatrical role. The natural/artificial fibre (raw material) is sourced from the local and national market depending on their availability. The raw materials used in manufacturing process are cotton, rayon, acrylic and polyester. The products are delivered as per the customer requirements. The company more often than not manufactures cotton and polyester yarn for stitching and weaving purpose in garment production.In recent years, the capacity of the firm has increased rapidly. However it manufactures fewer touchstone of product, when compared to its capacity. This is due to the influence of high productivity in similar type of products from Chinese manufacturers in the International market, the degree of producing various products has been limited to the Indian manufactures. fit in to the report from Office of the Textile Commissioner, the total demand for cotton yarn would be 3.46 MT million for the year 2010/11 in which 2.65 MT million would be for domestic demand and the remaining 720,000 MT for export purposes (Dr Ramkumar S, 2010). The quantity for export purpose has remained the same for recent years, because of the above mentioned reason. Being an SME, the founder of the firm significantly stresses on continuous improvement in manufacturing process and good quality product. Thus most of the Indian manufacturers in the SME segment of textile industry abide in the production process and they are finding all possible ways to reduce the production costs, wastes and improve the quality of product. Since its founding in 1989, the company is profoundly influenced by the spirit and values of its founder, chairman Srinivasan Perumaal. The business is run by the founder and his family member, its a family business. He emphasised more on production metho ds to be ahead above the market and customer expectations. This increased the number of customers and contracts for manufacturing good quality product in recent years. embodiment 1A and Figure 1B is the diagrammatic image of SMEs growth, development and employment in the past five years of Indian economy. The report clearly state that the number of MSMEs has increased to with child(p) extent and has also generated employment (Anon, 2010).Figure 1A Growth of MSMEs in India Sourced from Ministry of MSME Annual Report 2009/10.Figure 1B Employment in MSMEs in India Sourced from Ministry of MSME Annual Report 2009/10.Individual Entrepreneurship in Sri Vishnu Perumaal Spin Yarn LtdAt the heart of the individual entrepreneurship is innovation and the risk involved in implementing the idea. Organisms survive and grow by generating variations, selecting a new element in the variations, adapting the new element in their environment and spreading it among their species. The organisms whic h do this right survives, whilst those which do not do this properly disappears. Similarly in the case of the spinning mill, the founder search and generate the ideas for production process, with the avail of his employees. They collectively bring all the ideas together and a variety of choices are available to select. Among the various options available, the senior management chose a particular feasible idea and implement the same by calculating the risk involved in it. This process of deciding a particular idea results in the survival of the company in future . Survival of the fittest in short(Bessant J, 2007, p.10). The production process is briefly explained in Appendix A.As said earlier, company concentrated more in process innovation which increases the production performance on the whole when implemented. The idea of facility conveyors for material handling within the company was found to be an incremental innovation in the production process (Bessant J, 2001). Figure 2 sho ws the diagrammatic representation for dimensions of innovation.Figure 2 Dimensions Of Innovation (Bessant J, 2001).From the figure it is clear that the perceived extent of change is incremental over a period and the production process is changed/adapted with respect to the opportunity found. This would gradually increase the performance and helps in bench marking the production process and product quality.Managing InnovationsGenerating IdeasThe senior management found that at that place was a problem in transporting the stark goods from one machine to another machine for further processing, in other words issue raise in the material handling within the production process. Founder, chairman who always insisted in improving production process, initiated a persuasion within the firm to find the beaver idea. He trusted that the employees within the firm and the other people from outside firm in the same industry would contribute towards finding new ideas. either the employees did participated in the survey conducted within the firm. The survey had questionnaire which could help them communicate their concerns to higher management in the firm. It also had a column to suggest ideas, to solve the issue/concern they mentioned in the survey. Many ideas were suggested by the employees who worked in the production surgical incision of the firm.Selecting An IdeaIn order to choose a particular idea from the suggested or giving out a new idea, announcement was made in the company. The midpoint managers are the people who communicate with the customers and responsible for updating the company with the current news in the market. They also came up with an idea of conducting survey within the organisation, to solve the identified issue. They took forward this to many who were out in the market. Finally the middle management came up three ideas from their interaction by networking inside (survey) and outside the company, they were increasing the number of employees for material handling, installing a automatic conveyor (transporter machine) which moves with the help of conveyor belts and the last idea is to slowdown the production, so that the employees will be able to transport the sliver cans from one machine to another easily. These sliver cans contains unfinished goods from carding process and then moved towards tipple process.Implementing The New IdeaOn discussing the options with the managing director and middle managers and calculating the risks involved in it, the senior management refractory to install the automatic conveyor in four carding and drawing machines and compare its performance with the similar type and same number of machines which uses manual transportation. This trail method was insisted by considering the costs and risks involved in installing the conveyor machine. If the idea chosen reflects higher performance than the manual, then implementing the idea in all the carding and drawing machines was considered by the senio r management (founder).Innovations happen with a specify structure and a number of influences. The aerial view of the founder towards what happens inside the firm and how it should be managed, helped him to build a Spaghetti Model of Innovation (Bessant J, 2007, p.83), through the conducted survey. This survey influenced the employees from different departments and levels to interact and share the ideas about the existing production process and performance.Timmons Model Of Individual EntrepreneurshipThe firm operates in family business, however the deciding authority for any changes lies with the founder, chairman of the firm. Thus Timmons model of individual entrepreneurship is considered in this assignment. This model is the place where theory and application collides in the real world. According to Timmons forces such as Opportunity, Resources and Team plays a major role in entrepreneurial process. Among these forces, Opportunity is at the heart of the process, followed by Reso urces and Team (Timmons A., 2009, p.109). Figure 3 shows the diagrammatic representation of Timmons Model.Figure 3 Timmons Model Of Individual Entrepreneurship Jeffry A. Timmons and Stephen Spinelli, Jr (2009).OpportunityThrough communicating with other people in the industry and survey conducted within the firm. The idea of installing automatic conveyors to move sliver cans, which works with help of conveyor belts was found to be an opportunity to increase the productivity performance by 8% to 11%. The company was the first of all to install conveyors in Coimbatore. Various factors such as customer demand versus companys supply, cashier even time, growth of the company, production rate during and later the installation were considered for implementing the idea. The idea was finally decided for implementation, when it satisfied the above mentioned criteria. The final decision was made by the founder of the organisation.ResourcesThe main resources considered for implementing idea were co-operation of employees for increasing the productivity in other machines during the installation process to equate the customer demand, availability of the conveyors in market, financial resources. The company insisted its employees to learn the mechanism of the conveyor transporter, which would help them to understand its operational functionality. Among these above mentioned resources, financial resources was least considered, as the company approached the Yarn Spinners Association (Government Organisation) for subsidy. Being the first company in Coimbatore to install conveyors, the company was funded by the Yarn Spinners Association to implement the idea. Thus the founder marshalled all the resources towards implementing the identified opportunity.TeamA cardinal member team was formed by the founder to work on the installation of the conveyor machine. The team had three employees from production department which included the production manager and the rest three were fr om administration and marketing department. Roles of the team members were assigned by the senior management, founder. Team had members from various departments for the following reasons,The tasks of the three employees from production department were to learn the functionality of the machine which is to be installed, report about the production rate in both manual and automated transportation of sliver cans and to maintain the same production rate as earlier during the installation process.The role of the employee from administration department was to help the other members in the team financially and communicate the reports generated and issues raised to the senior management. These reports, issues were generated and raised by the other members in the team.Two members from marketing department were looking into customer demands, forecasting the demand and insisted in timely sales pitch of the product to the customers during the installation process.The organisational structure is given in Appendix B. Rounding out the three forces through finding the opportunity, marshalling the resources and choosing a correct team, the founder of the company made the best fit and balance among these forces. He also created a sustainable base through converting the opportunity to a business, this was possible because of the following traits of the founder, savvy the opportunity and economics of business through customer and market trends.Communicating vision and goals effectively, motivating for creativity and leading the employees in the right direction.Dynamic capableness of fixing, shaping, moulding and making it happen.Also by understanding social awareness which includes various factors such as energy conservation, pollution and global warming.Sri Vishnu Perumaal Spin Yarn Ltd A Family BusinessSmall and family business firms plays a major role in economic development and wealth (Bracci,E.,andE.Vagnoni.,2011, p.7). Sri Vishnu Perumaal Spin Yarn Ltd is categorised as f amily business firm, as it is actively managed by Srinivasan Perumaal, the founder (with decision making authority) and his son Vishnu Perumaal, the managing director (managing the operations) of the firm. It is said that the entrepreneurs who run their family business not only concentrate on the survival of the firm, more over the business should nurture the future generation of the family. Succession is commonly seen in Indian family business. It is clear from a survey conducted few years ago, that the success of family business depends on the five unique resources such as human capital, social capital, patient financial capital, survivability capital and sink cost of governance. When all these resources are directed in the correct direction, it would eventually lead to a successful family business (Anon, 2011). Family businesses in India are still in existence because of the reason, that the younger generation dont have inheritance taxes unlike in US (Anon Mint, 2010).It is kno wn that the head of the family plays a major role in development of bonding among the family members, similarly the founder of a family business plays a major role in developing the culture, values and performance of the organisation. Succession is one of the unfavourable process in a family business which takes time, needs good planning and managing to be successful. Intellectual capital such as tacit companionship, work-related knowledge, work-related competencies, owner-managerial spirit, culture, values and others are considered to be most important factor during succession process, which should be transferred to successor. Founder being the centre of the firms network and source of knowledge, must ensure that all the above mentioned intellectual capital are transferred to the successor before the succession. The successor is the person who represents the source of knowledge and the recipient of the knowledge transfer process and posses basic knowledge about the business throu gh formal education and training. They should have characteristics such as, responsibilities, personal motivation and commitment towards the firm. Mutual understanding and relationship between successor and predecessor is the basis of the successful process. Vishnu Perumaal, managing director of the firm would be the successor of the founder of the firm in future. He has good relationship with his father, the founder of the firm and working with the firm for than eight years. Thus by having the work experience, interaction with the employees, business knowledge and the above mentioned intellectual capital characteristics of a successor. It is believed that he would be a good successor after the succession process. After all, succession in the small family business is all about understanding the creation and development of values (Bracci,E.,andE.Vagnoni.,2011, p.7).Factors Facilitating Entrepreneurship In The OrganisationThere are many factors such as knowledge management, individual resources, internal and external communication networks, organisational culture and size of the organisation that facilitates the entrepreneurship. They are briefed below,Knowledge ManagementThe acquisition of knowledge involved both internal and external environment scanning. Ideas were identified as opportunity after searching, filtering and evaluating its potential in long run (Bessant J, 2007, p.186). Scanning the internal environment of the organisation was given high priority than the external by the founder of the firm. This influenced the knowledge flow from bottom to top and the vice-versa. Because of the belief that, the individual who works closely in a particular process would know its functioning, dos and donts, pro and cons of the process. more(prenominal) over the company maintained a database for the ideas which are generated within the company, with the help of which an idea can be retrieved and reviewed at any point of time. The company had a policy of external n etworking at different levels with others in the industry, this helped to categorise the type of idea/knowledge they received from outside. Founder emphasised more on encyclopaedism through mistakes. This was mainly due to reason that a employee when makes a mistake and learns through it, will never do the same again and he/she will also communicate the learning to team and other employees in the firm.Individual Resources and Size Of The FirmThe individuals in the firm had responsibilities, personal motivation and sufficient knowledge about the process in which they work. Founder interacted with the employees in the firm on daily basis, this was possible because of the size of the firm. Employees had both professional and personal relationship with the other members of their team. The company has 190 employees at present. There are 16 teams in production and packing department with 16 supervisors and seven to nine team members in each team. The firm had a maximum of ten members in a team, to have smooth control over the team.Organisation cultureThe firm had defined set of rules to be followed within the organisation. They were, employees can report any kind of issues to the senior management through the point of contact or supervisors with whom they work. However, the founder set up meetings with different departments in weekly basis, which helped the employees to convey their views and share ideas about the organisation and its functioning. Strategy of the firm was communicated effectively to employees in all the meetings. These meeting helped the founder to affirm track of the employees attitude, behaviour towards the organisation and also the culture inside the firm.Internal and External NetworkingIt is believed that communication among the individual plays a vital role in success of the firm. Reassigning the tasks and realigning the teams were done within the production and packing department, to build a strong network among employees. Employees also ha d the capability of adapting them in the new team or to work for the newly assigned task, through willingness to learn from others. Being a small firm, the employees were aware of the individuals who work in different departments and teams. The employees from senior to lower level of the firm interacted with outsiders equivalent to their level.All the above mentioned were controlled, directed towards sustainability and growth by the founder. Founder serves as the driving force towards business success, with leadership behaviour, intellectual knowledge and presidential term skills. On installing the conveyors, the company found that the production rate has increased by 9%. Hence the trial worked well, founder decided to implement in all the machines.RecommendationIndian industry has been dominated by family businesses traditionally. Businesses operating in the growing Indian economy should have non-family member in the senior management level. This person could share different persp ectives and ideas about the business and market in which it is operating. The younger are more energetic and involved in the family business. In todays competitive world all the products are globalised and firms wishes to be in the global market (Anon Mint, 2010), hence it is recommended to have another managing director in the senior management level for this company, which would eventually strengthen the strategy of the firm, increase the momentum, bring more opportunities and success to the business. This would also take the business globally in future. More over the culture of reporting the issues to the senior management, instead of reporting to point of contacts/supervisors and middle managers is recommended. This could bring increase the responsibilities of the employees.ReferencesJeffry A. Timmons and Stephen Spinelli, Jr., (2009), New Venture Creation Entrepreneurship for 21st Century, 8th ed, New York, Mc Graw Hill.Jeffry A. Timmons, (1990), New venture creation Entrepre neurship in the 1990s, 3rd ed, Homewood, IL, Irwin.John Bessant and Joe Tidd, (2007), Innovation and Entrepreneurship, England, John Wiley.Simon Bridge, Ken ONeill and Stan Cromie, (2003), Understanding Enterprise, Entrepreneurship and Small Business, 2nd ed, England, Palgrave Macmillan.Dr. Seshadri Ramkumar, (2010), India Caps Cotton Yarn Exports at Highest Limit In Three Years, acquirable at , Accessed on prove 20, 2011.Anon, (2010), MSME Annual Report 2009/2010, Available at , Accessed on March 20, 2011.Anon, (2011), Family Business, Available at , Accessed on March 21, 2011.John Bessant, Joe Tidd and Keith Pavitt (2001), Managing Innovation Integrating Technological, Market and Organisational Change, England, John Wiley.Bracci,E.,andE.Vagnoni.,(2011).Understanding Small Family Business Succession in a Knowledge Management Perspective.IUP Journal of Knowledge Management9,no.1,(January1)7-36.Available at Accessed March 22, 2011.Anon Mint, (2010), Family businesses tend to get insular.Mint,September17, Available at Accessed March 22, 2011.Schumpeter J. A.,(1942), Unpublished session slides from Catherine Gurling.